    [Public Papers of the Presidents of the United States: George W. Bush (2004, Book III)]
    [December 15, 2004]
    [Pages 3074-3077]
    [From the U.S. Government Publishing Office www.gpo.gov]

    Remarks Following a Meeting With Prime Minister Silvio
    Berlusconi of Italy and an Exchange With
    Reporters
    December 15, 2004

        President Bush. There will be two opening statements, and then we'll
    take two questions per side. Thank you for coming.
        Silvio, it's great to welcome you back to our country. I think it's
    fitting that one of the first world leaders to have visited after our
    elections is my friend Silvio Berlusconi. He is a close personal friend.
    He is a friend of the United States of America.
        I told the Prime Minister I look forward to working with him over
    the next 4 years to make the world a better place for all, that I've got
    work to do in Europe. He gave me some very good advice about my upcoming
    trip. But he always gives me good advice, and I'm proud to have his
    advice.
        We talked about peace between Israel and the Palestinian Authority.
    I think there's a very good chance that we can achieve that peace. I
    look forward to working toward that end. The Prime Minister had good
    advice on that subject as well.
        He expressed his concerns about the relationship between the dollar
    and the euro. I told him we're going to take this issue on seriously
    with the Congress. The best thing that we can do from the executive
    branch of Government in America is to work with Congress to deal with
    our deficits. One deficit is a short-term budget deficit. Another
    deficit is the unfunded liabilities that come with Social Security and
    some of the health programs for the elderly. I told the Prime Minister
    that Social Security reform will be at the top of my agenda. I
    campaigned on the issue. I look forward to working with Members of
    Congress to resolve this long-term, unfunded issue so that the world
    financiers can take comfort in the fact that this Government will
    address one part of the budget deficit. There's a trade deficit. That's
    easy to resolve; people can buy more United States products if they're
    worried about the trade deficit.
        But we've had a good visit. And I'm proud my friend is here.
        And finally, we discussed our mutual desire to spread freedom and
    peace. I want to thank the Prime Minister for his understanding about
    the need for the free world to succeed in Afghanistan and Iraq. He's the
    kind of man, when he gives you his word, he keeps his word, which is the
    sign of an impressive, strong leader.
        So thank you for coming.
        Prime Minister Berlusconi. Thank you, Mr. President, for your kind
    words. Thank you for the friendship you showed to me, to my Government,
    and my country.
        And my behavior and the behavior of my Government is based on the
    fact that we share the same values. We appreciate strongly the fact that
    America has taken on the responsibility of defending and spreading peace
    and democracy all over the world. And we appreciate the fact the United
    States do that with sacrifices and a lot of suffering. So we fully share
    the work carried out by the American administration. And the political
    agenda, the program which has been announced for the next 4 years, is
    something we fully agree on.
        We share the same opinion as to the need of reforming the United
    Nations in order to make it an institution which will be able to tackle
    the problems affecting this century and the multilateralism which has to
    take into account results to be achieved and complete facts. We agree on
    the fact that we have to continue the fight and the war on terror
    together. And we agreed on the fact that it is now the appropriate time
    to solve the Middle East issue.

    [[Page 3075]]

        And in particular, I agree on the way in which we keep on and carry
    on our relationship. It's a very frank, direct, straightforward, and
    spontaneous way, full of truth. And I think this was the deepest reason
    why President Bush succeeded so much, especially vis-a-vis the
    Americans. It is not politics. There is no politics which makes people
    say things which people do not believe in or think. President Bush tells
    me and all of the others always what's in his mind. And it is very
    positive that ``yes'' means really ``yes'' to him and ``no'' means
    ``no.'' And I want to reassure President Bush that we'll do any possible
    effort to strengthen the relationship between the United States of
    America and Europe. Because I agree with him: The West is only one.
        President Bush. Welcome. Anybody representing AP here? Oh, you are,
    Terry [Terence Hunt, Associated Press]. Go ahead.

    Upcoming Iraqi Elections

        Q. Iraq's Defense Minister says that Iran and Syrian intelligence
    agents are supporting Al Zarqawi and that Iran is trying to sway the
    January 30 elections. Do you believe these charges are accurate, sir?
    And is there anything the United States can do besides simply telling
    Iran and Syria to refrain?
        President Bush. We have made it very clear to the countries in the
    neighborhood, including the two you mentioned, that we expect there to
    be help in establishing a society in which people are able to elect
    their leaders and that we expect people to work with the Iraqi Interim
    Government to enforce border, to stop the flow of people and money that
    aim to help these terrorists. We've made that very clear, and we'll
    continue to make it clear.
        We have made it clear that for the good of the area, that there
    ought to be a peaceful country where the different religions can come
    together under the TAL which has been passed, the go-by for what a new
    constitution should look like. And we will continue to make it clear to
    both Syria and Iran that--as will other nations in our coalition,
    including our friend the Italians--that meddling in the internal affairs
    of Iraq is not in their interests.
        You want to call on somebody from the Italian press?

    [At this point, an interpreter translated President Bush's remarks into
    Italian.]

        The President. I'll be more polite to the translator from now on.
    [Laughter] Want to call on somebody from the----

    Currency Exchange Rates

        Q. You said you've discussed the euro-dollar ratio, and therefore,
    you discussed your relations between the two economic blocs. Can you say
    something more in detail about what you talked about and if there is, in
    the future, the possibility of a better balance between the euro and the
    dollar in terms of the exchange rate?
        The President. The policy of my Government is a strong dollar
    policy.
        Interpreter. I'm sorry, sir. I didn't hear you. [Laughter]
        The President. She might not agree with it. [Laughter] We believe
    that the markets should make the decision about the relationship between
    the dollar and the euro. Therefore, to the extent that the Federal
    Government is involved with strengthening--making the conditions such
    that a strong dollar will emerge, we'll do everything we can in the
    upcoming legislative session to send a signal to the markets that we'll
    deal with our deficits, which, hopefully, will cause people to want to
    buy dollars.
        Independently, the Federal Reserve, under the leadership of Alan
    Greenspan, raised the interest rates yet
    again, a signal to the world markets that the Chairman is also aware of
    the relative currency valuations between the euro and the dollar.

    [[Page 3076]]

        I'm not that generous yet. We love April [April Ryan, American Urban
    Radio Networks], but there's a limited number of questions.
        Holland [Steve Holland, Reuters].

    Social Security Reform

        Q. Sir, you're going to this conference today. Some Democrats call
    the private accounts in Social Security a risky scheme. What happens if
    people lose money on their investments? Does the Government bail them
    out?
        President Bush. Look, Steve, this is the issue about addressing the
    long-term liability issue. This is the Social Security issue. Like many
    nations in Europe, there's an issue with Social Security systems. Baby
    boomers are getting ready to retire, and there's not enough workers to
    sustain that which--that which has been promised. And so the fundamental
    question I placed before the Congress is: We have a problem; let's work
    together to deal with it.
        I believe there's a consensus beginning to grow, that members of
    both political parties understand now is the time to address this
    problem. I believe one way to help make sure the system meets the needs
    of a younger generation is to allow younger workers to take some of
    their own taxes and invest in a personal savings account--under certain
    conditions. The people in our country have heard this notion, so-called
    ``risky scheme'' adjectives in the 2000 campaign and the 2004 campaign.
    I took the message to them. They realize, like I realize, now is the
    time to deal with the problem. And I look forward to working with both
    members--members of both parties to solve this problem.
        But let me just give you one--this is a chance now to kind of start
    laying the groundwork for future questions. The great desire for people
    in Congress is for me to negotiate with myself. You notice I said the
    great desire for Members of Congress, not members of the press. And
    therefore, I will continue to articulate principles that I think are
    important and reach out to members of both parties to fashion a plan
    that solves the problem.
        Prime Minister Berlusconi. The problem of Social Security is common
    to all of the Western World. And this is, luckily, due to the fact that
    we live longer because of the better standard of living and because of
    the discoveries made by medicine. In Europe, all governments are dealing
    with reforming Social Security systems, but one thing is for sure, that
    it needs to be done. That is, we have to extend the working life of the
    people.
        I'm one of the strongest believers in that, because at my age, I'm
    convinced that one--at my age, you can keep on working pretty well.
    [Laughter] And you can tap on the experience you've kind of piled up
    over your working life.
        President Bush. You look like a baby boomer. [Laughter]
        Prime Minister Berlusconi. I thank you very much. It's medicine as
    well--also credit medicine. [Laughter]
        President Bush. Final question. Do you want to call on somebody?
        Prime Minister Berlusconi. I want to say something. We have already
    reformed our Social Security system in Italy. And this is one of the 24
    reforms through which we are modernizing our country. And I've just said
    to President Bush that at the end of its term, my Government will have
    completed many more reforms than all of the previous governments in the
    Italian Republic.
        President Bush. Very good.
        A final question from the Italian press?

    Proposed Joint Italian-U.S. Helicopter Production

        Q. Did you debate the possibility that the President of the United
    States will soon fly on Italian helicopters? [Laughter]
        President Bush. No, I appreciate that----

    [[Page 3077]]

        Prime Minister Berlusconi. The Italian helicopters almost completely
    made, manufactured, in the United States.
        President Bush. With U.S. parts. I've got the message, yes.
    [Laughter]
        Prime Minister Berlusconi. I can only say that I've been flying
    these helicopters for 30 years, and I'm still here.
        President Bush. And you never crashed. [Laughter] That's a good
    start. [Laughter]
        The Prime Minister brought up the issue. I'm very familiar with it.
    As you know, we delayed a decision until later on in the spring. I'm
    very aware of the joint venture. I understand the nature of U.S. jobs
    that will be created in this venture, and I assured him the venture will
    be treated fairly.
        Thank you for coming. Happy holidays. Happy holidays.

    Note: The President spoke at 11:57 a.m. in the Oval Office at the White
    House. A reporter referred to Defense Minister Hazim Qutran al-Khuzai
    al-Shalan of the Iraqi Interim Government; and senior Al Qaida associate
    Abu Musab Al Zarqawi. Prime Minister Berlusconi spoke in Italian, and
    his remarks were translated by an interpreter.